- all
- Regulatory strategy and litigation support
- Large energy user services
- Energy markets and financial analysis
- Energy and environmental policy
- Cost of service and rate design
- Distributed energy resources
- Transmission planning and pricing
- Resource planning and procurement
Storage Adoption Strategy | Glendale Water and Power Solar, 2024
After the Glendale City Council passed a city-wide goal of achieving 10% adoption of customer solar and storage technologies by 2027 and additional 100 MW peak dispatchable and peak load-reducing capacity, Glendale Water and Power (GWP), the municipal utility, enlisted E3 to help it devise a strategy to reach that goal equitably and cost-effectively. E3 employed the IDSM tool to assess the predicted adoption of distributed solar and storage according to several different scenarios with varying utility incentives and rate designs. The scenarios were evaluated not only on whether they reached the 10% target but also on their ability to attribute the benefits of DERs equitably among more than a dozen different customer segments. System-wide impacts on emissions, ratepayer impacts, and utility avoided costs were calculated with the outputs of the IDSM tool.
The balance between affordability and adoption impact is a careful consideration when selecting program portfolios to ensure equitable growth. IDSM modeling results enable the E3 team to reveal the feasibility of achieving the 10% adoption target through a strategic combination of robust community outreach, utility incentives, and a rate design that encourages adoption while also mitigating ratepayer impacts.
People
Energy Storage Market Update and Long Duration Storage Study | Massachusetts Clean Energy Center, 2023
In collaboration with the Massachusetts Clean Energy Center (MassCEC) and Department of Energy Resources (DOER), E3 conducted a study that assesses the current state of energy storage in the Commonwealth, the market outlook for emerging mid- and long-duration storage (LDES) technologies, and potential applications of mid- and long-duration storage, all in the context of providing benefits to ratepayers and achieving the state’s ambitious decarbonization goals.
The study included several modeling and stakeholder engagement elements. Leveraging E3’s pro forma financial model of storage technology costs and a custom-built storage dispatch model, the project team analyzed several storage use cases to help the state understand impacts of current incentive programs. Assessment of future storage value involved loss-of-load probability modeling of the entire ISO-NE footprint using E3’s RECAP model. E3 engaged stakeholders throughout the study process through interviews with more than 50 key stakeholders and two public stakeholder workshops. In the study, E3 shows that the role of energy storage changes to suit grid needs, but that storage requires well-designed state support to encourage deployment and innovation that targets these needs. In addition to writing a report providing study findings, the team worked with DOER to translate findings into policy recommendations for the state.
Read the detailed project description.
People
New York City Long-Term Energy Plan | New York City Mayor’s Office of Climate and Environmental Justice, 2022-2023
E3 led a team completing an inclusive, year-long study to identify the policies and programs needed to achieve the New York City’s decarbonization goals. E3’s analysis involved both examining policies and programs to meet the city’s long-term goals as well as providing specific recommendations for actions to be taken during the current administration. The study included eight research branches focused on the performance and cost of heat pumps in new buildings; the affordability of electrification retrofits in rent-regulated housing; the opportunities for electric school bus managed charging and vehicle-to-grid; the potential for in-city wind energy; a screening of public lands for new clean energy development; an assessment of the electric grid readiness for increasing heat pump and EV charging loads; and an evaluation of how bulk energy storage could reduce reliance on in-city fossil generation. Based on E3’s study, New York City published PowerUp NYC, the city’s first Long-Term Energy Plan, which includes 29 clean energy initiatives focused on the city’s energy grid, its buildings, and its transportation sector. Many aspects of the PowerUp NYC, from research topic selection to recommendations, were developed in collaboration with the public, and with the public’s interest at the forefront of the decision-making process. The recommendations of the LTEP are aligned with long-term energy and equity policy mandates from both the city and state and revolve around the needs of NYC residents.
Read the detailed project description.
People
DER Roadmap Development | Tata Power-DDL, 2018-2022
With a United States Trade and Development Agency, E3 supported Tata Power-DDL as it explored the regulatory and business cases for a broader set of distributed energy resources including electric vehicles, demand response, storage, and energy efficiency in India. E3’s support began with analyzing Tata Power-DDL’s system to understand 1) the cost-effectiveness of DER technologies from different perspectives in the benefit-cost analysis framework, 2) the optimal DER portfolio that maximizes the benefits for the entire system, and 3) the pathway to realize the optimal portfolio through proper incentive structures or other mechanisms.
The project developed least-cost DER portfolios under low, medium, and high scenarios. These scenarios were crafted based on varying levels of load forecast, distribution deferral values, and technology costs. For each scenario, the project employed the IDSM tool to first assess the cost-effectiveness of various DER technologies, including electric vehicles (EVs), efficient air conditioners (ACs), efficient fans, solar panels, and Demand Response (DR) programs. The IDSM tool then simulated customer adoption decision-making processes and the final adoption level. Based on E3’s analysis, Tata Power-DDL decided to focus on a subset of DER programs and identified two DER pilots for the beginning of a distributed energy transition roadmap: EV charging centers and the DR Hotspot Program.
Read the detailed project description.
Publications
People
Advanced Metering Infrastructure Filing Support | National Grid, 2018 – 2022
E3 supported to National Grid, beginning in 2018, with developing and progressing their Advanced Metering Infrastructure (AMI) and Grid Modernization Plan (GMP) filings in New York, Rhode Island, and most recently in Massachusetts. In addition to developing both a detailed business case and benefit-cost analysis for the meter installations, E3 worked with National Grid’s AMI team to engage internal stakeholders in the development of the filings. and to coordinate filing approaches with Eversource Energy’s Massachusetts team. E3 also worked with National Grid to align the proposed Massachusetts AMI implementation timeline with National Grid’s approved New York AMI implementation plan to maximize the cost savings of codeployment. National Grid’s final AMI proposal was approved by the Massachusetts Department of Public Utilities in December 2022.
People
New York Electricity Grid Emission Factors | NYSERDA, 2020-22
E3 supported NYSERDA in developing a new methodology for calculating greenhouse gas emission factors for New York’s electricity grid. Greenhouse gas emission factors measure the emissions intensity of grid power (the amount of emissions produced per unit of energy generated, such as in metric tons per megawatt-hour). E3 calculated future marginal grid emission factors for carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) for New York State for 2023 through 2040, on a month-hour and annual basis. E3 worked together with NYSERDA to write a white paper describing the methodology, results, and recommended applications of the new emission factors, as well as an accompanying database of emission factors for use by stakeholders.
Read the detailed project description.
People
New York Distributed Solar Roadmap | NYSERDA, 2021
Working with the New York Department of Public Service (DPS) and the New York State Energy Research and Development Authority (NYSERDA), E3 supported the development of a new roadmap for New York to achieve the installation of at least 10 Gigawatts of distributed solar by 2030. The roadmap lays out a path that will expand renewable energy in New York, generating enough clean energy to power 700,000 additional homes, while also prioritizing an equitable expansion of New York’s distributed solar infrastructure. E3 contributed to the distributed solar framework by providing analysis that informed the plan’s policy recommendations. E3 developed a supply curve model for distributed solar projects in New York and used this model to evaluate program costs for different incentive program options. The analysis was used to inform the roadmap’s ultimate recommendation to extend the current NY-Sun Megawatt Block incentive program to help achieve the 10 GW target.
Read the detailed project description.
People
Electrification of Transportation Rate Design and Infrastructure Applications | Hawaiian Electric Company, 2020-2021
E3 supported the Hawaiian Electric Company (HECO) on four transportation electrification filings. First, E3 and its subcontractors Anser Advisory and Black & Veatch designed a program for HECO to build the make-ready infrastructure for electric buses to support electrification of transportation for transit, tourism, and other bus operators. Second, E3 designed two new electric vehicle charging rates, EV-J and EV-P, for commercial electric vehicle charging sites. E3 developed a rate design calculator and performed cost-benefit assessments to evaluate different rate designs and propose final rates that will support low-cost public EV charging in Hawaii. Third, E3 and its subcontractor Anser Advisory supported HECO in developing its Charge Ready Hawaii pilot program to deploy make-ready charging infrastructure for commercial and multi-unit dwelling locations. Finally, E3 and its subcontractors Anser Advisory and Atlas Public Policy supported HECO in developing a proposal to expand its public DC fast charging (DCFC) infrastructure pilot to build out 150 DCFC ports and 150 dual-port Level 2 charging stations across its service territory. These programs – three of which have been approved by the Hawaii Public Utilities Commission with the fourth project (DCFC program expansion) under review in 2022 – build on HECO’s Electrification of Transportation Roadmap and allow for HECO to support its customers in electrifying their vehicles and fleets.
People
Integrated Resource Plan | California Public Utilities Commission, 2023
E3 has provided comprehensive technical and advisory support to the Energy Division of the California Public Utilities Commission (CPUC) in its administration of the state’s IRP program, mandated by the passage of SB 350 in 2016. E3 worked with CPUC staff to develop the structure of the IRP program including a three-year modeling cycle in which Staff prepares a system-wide plan that informs the California Independent System Operator (CAISO)’s annual Transmission Planning Process (TPP) and informs Load-Serving Entities integrated resource plans in alternate years.
E3 has helped the CPUC design an optimal “Preferred System Plan” for the combined utilities that incorporates the resource procurement plans of the LSEs and complies with the state’s clean energy policy requirements. In the 2022-2023 cycle, the policy requirements considered include a 60% RPS by 2030 and SB 100 by 2045, and a statewide greenhouse gas emissions target of 25 million metric tons (MMT) by 2035, while capturing the operational and reliability challenges encountered at high penetrations of variable renewable generation. As part of this process, E3 evaluated dozens of scenarios reflecting alternative assumptions about load forecasts and electrification, resource costs, the availability of offshore wind and out-of-state wind, the ability of end-use loads to operate flexibly, and a variety of other input parameters.
People
DER Adoption Study | Silicon Valley Clean Energy, 2019-2020
E3 assisted Silicon Valley Clean Energy (SVCE) in evaluating the adoption potential of Distributed Energy Resources (DERs) in residential and commercial buildings through a detailed sub-segment breakdown using E3’s IDSM tool. In addition to building electrification, the IDSM evaluation focused on various technologies, including rooftop solar, electric vehicles, and behind-the-meter (BTM) storage. The IDSM tool simulated adoption levels under different scenarios considering varying incentive levels, California building codes and standards, and utility electricity and natural gas retail rates. This analysis provided SVCE with insights into how different factors influence the adoption of DERs and helped identify the most effective strategies to encourage their uptake in both residential and commercial sectors.
EV Program Regulatory Support | AEP Ohio, 2017
To support AEP Ohio’s program application to the Public Utilities Commission of Ohio (PUCO), in which the company sought to install 1300 electric vehicle charging stations over four years, E3 performed a cost-benefit analysis of plug-in electric vehicle (PEV) adoption in the company’s service territory. To do this, E3 developed a statewide PEV adoption forecast and estimated costs of PEVs and charging stations as well as the electric grid costs of serving PEV charging loads. E3 also quantified the benefits of PEV adoption, which primarily result from reduced gasoline and vehicle maintenance costs. E3’s analysis — which found net benefits of $1,600 per vehicle in Ohio, and utility ratepayer benefits of $1,470 per vehicle — provided credible, independent support for AEP Ohio witness testimony.
People
Regional EV Impact Analysis | Pacific Northwest Six-Utility Study, 2015-17
After analyzing the costs and benefits of plug-in electric vehicles (PEVs) for Seattle City Light (SCL), E3 worked with SCL and five additional utilities to complete a Northwest regional analysis covering Washington and Oregon that assessed costs, benefits, opportunities and challenges for the region as a whole and for each utility. E3 investigated the value of PEV adoption from ratepayer and societal perspectives, quantified forecasted load impacts and greenhouse gas emissions, and assessed the value of managed charging in each utility’s service territory, modeling light-duty vehicles as well as taxis and car share vehicles, parcel trucks, buses, and forklifts. Overall, the study found that the region would benefit from transportation electrification through lower overall spending on energy and reduced greenhouse gas emissions. E3’s final report, completed in March 2017, contained extensive documentation for each utility.
Rate Structures for Electrified Transit | California Transit Association, 2018
E3 utilized its deep rate design experience and robust vehicle electrification modeling capabilities to help the California Transit Association (CTA) develop electricity rate structures to promote widespread transit electrification. E3 worked with CTA member agencies to develop key data sets for charging profiles and candidate rate designs. This involved gathering extensive data to create accurate charging profiles for public buses, which differ in terms of charging locations (on route vs. at depot), charging times, and route lengths. E3’s modeling also incorporated forecasted changes in charging technologies as well as current and future bus technology configurations. E3 then developed a wide range of potential rate structures with various time-of-use energy charges and demand charge structures and levels, each of which was designed to be revenue-neutral so that any design could be implemented as an option for the relevant customer class. This project quantified the importance of rate structure selection in delivering value for both “smart” and un-managed charging and informed the ongoing discussion among utilities, regulators, and transit agencies. CTA represents more than 200 member organizations, including all of California’s largest urban transit operators and dozens of agencies in suburban and rural areas.
Electrification of Transportation (EoT) Strategic Roadmap | Hawaiian Electric Companies, 2017-18
E3 provided the Hawaiian Electric Companies significant support in developing an industry-leading “Electrification of Transportation Strategic Roadmap,” filed in 2018, which outlines key utility initiatives and partnerships designed to realize economic and environmental benefits associated with EVs. In formulating and drafting the Roadmap, E3 developed a rigorous, data-driven approach to identify high-impact utility actions to promote EV adoption, minimize costs and grid impacts, and capture maximum benefits for utility customers. The Roadmap quantifies the significant benefit that EVs are predicted to provide to ratepayers and the state’s economy between now and 2045: up to $1,800 and $2,700 per vehicle, respectively, if more vehicles charge during periods of solar abundance. EVs will also support Hawaii’s ambitious goal of 100% renewable energy by 2045, provide significant CO2 reductions and local air quality benefits, and substantially reduce reliance on imported oil. Near-term priorities include: 1) customer outreach and education; 2) partnering with third parties to build critical charging infrastructure; 3) supporting customers’ transition to electric buses; 4) aligning EV charging with grid needs; and 5) coordinating with ongoing grid modernization efforts.
People
Non-wires alternatives in transmission planning | Bonneville Power Administration, 2001–present
In 2001, E3 helped Bonneville Power Administration (BPA) develop a groundbreaking transmission planning process in which we considered non-wires alternatives—energy efficiency, demand response, and distributed generation—alongside conventional investments. BPA was one of the first major transmission providers in North America to use an economic screening for every potential bulk transmission investment. Since then, we have studied non-wires alternatives for other BPA project proposals, including the Hooper Springs line in southeastern Idaho and the 500 kV I-5 corridor reinforcement project in Washington. For the latter, E3 evaluated deferral options, including energy efficiency and demand response, as well as redispatch of generators. BPA is evaluating proposals for implementation of the redispatch option, with potential savings of up to $750 million for its customers.
Publications
People
Least-cost planning for achieving Hawai‘i’s 100 percent RPS | HECO, 2015–present
With more than two decades of experience in Hawai‘i, E3 is now helping the Hawaiian Electric Company (HECO) plan for the grid transformation needed to reach 100 percent renewable generation by 2045. Our long-term analysis supported development of the utility’s Power System Improvement Plan (PSIP), with modeling centered on individual island plans and interisland transmission. The study develops least-cost expansion plans for each island using a variety of policy cases and fuel price forecasts. E3 used its Renewable Energy Solutions model (RESOLVE) to explore the economic trade-off between renewable curtailment and investments in storage, and to develop least-cost expansion plans consistent with each scenario. We also solicited and incorporated stakeholder input. HECO filed the PSIP, including testimony and support from E3, with the Hawai‘i Public Service Commission in December 2016.
Publications
People
EV charging tariff design | San Diego Gas & Electric, 2014–15
E3 supported San Diego Gas & Electric (SDG&E) in its successful application to the California Public Utilities Commission to launch a pilot program that uses pricing to efficiently integrate electric vehicle (EV) charging in an increasingly renewable grid without contributing to local distribution capacity shortages. SDG&E devised a dynamic vehicle grid integration rate to encourage EV charging at times when high renewable generation depresses wholesale energy prices. The tariff also discourages charging during peak distribution hours. E3 used its EV Grid Impacts Model to show that EV owners that shift their charging in response to the proposed rates would reduce their per-vehicle charging costs to under $600 annually from around $1,400 per year on the current time-of-use rate. The modeling used projected wholesale energy prices in high-renewable scenarios developed using E3’s stochastic production simulation tool, Renewable Energy Flexibility Model (REFLEX). The commission approved a modified version of the proposed program in 2016, and SDG&E is now implementing the pilot.
People
Innovative rate design for energy reform | NYSERDA, 2015–16
E3, working with the New York State Energy Research and Development Authority (NYSERDA), developed an innovative retail electric rate design to encourage beneficial customer investment in distributed energy resources (DERs), a leading goal of the New York Public Service Commission’s Reforming the Energy Vision initiative. Our conceptual full-value tariff (FVT) has three components: a customer charge, a size-based network subscription charge, and a time-varying kWh price. The network subscription charge may vary by location to reflect local transmission and distribution costs. We modeled customer response to the FVT to assess its impact on the value proposition of DER technologies, such as energy storage, smart thermostats, and smart vehicle charging. The analysis showed that the FVT can yield savings from measures that are not encouraged under existing rates, while still compensating solar PV and energy-efficiency measures in high-value locations. The FVT conceptual framework underpins the Smart Home Rate demonstrations that New York’s investor-owned utilities filed with the commission in February 2017.
Publications
People
Residential rate design | Hawaiian Electric Company, 2005–present
E3 has supported electric rate design in Hawai‘i since 2005. Currently, E3 is assisting Hawaiian Electric Company (HECO) on next-generation retail pricing strategy and rate designs that align with the state’s goal of meeting its 100 percent renewable portfolio standard (RPS) requirements in a way that encourages cost-effective deployment of customer-owned distributed energy resources. HECO first retained E3 to recommend a strategy for developing rates that would encourage conservation to mitigate the impact of high electricity supply costs on its customers. We recommended a three-tier inclining block structure, which is still in place, to minimize increases on small customers and provide conservation incentives to large customers. We also helped get the rate approved, preparing direct testimony and presenting to the utility’s board of directors.
People
Market and financial analysis for $200 million storage investment | Macquarie Capital, 2016
Macquarie Capital turned to E3 for analysis and strategic advice on a potential investment in a 50 MW distributed storage project developed by Advanced Microgrid Solutions (AMS) in the Los Angeles Basin. We performed simulations to verify AMS’s internal modeling of the benefits, costs, and value proposition of behind-the-meter, customer-sited storage assets. To understand potential revenue streams over a 20-year period, E3 analyzed the storage project and the underlying business model, forecasting wholesale and retail electric markets. Our financial analysis for the investors and potential lenders was a key element of the due diligence leading to Macquarie’s $200 million financing arrangement with AMS to take ownership of the project.
People
Regulatory strategy for EV infrastructure pilot | Southern California Edison, 2014
E3 assisted Southern California Edison (SCE) in developing the policy case for its successful application to the California Public Utilities Commission to pilot a ratepayer-funded plug-in electric vehicle (PEV) infrastructure program and education effort. Envisioned as the first phase of a five-year program, the Charge Ready initiative will accelerate the buildout of charging infrastructure by preparing host sites and providing rebates to defray the cost of charging equipment. SCE will recruit hosts in multifamily buildings, workplaces, and disadvantaged communities to ensure that charging is available to a broad spectrum of potential PEV owners. E3 provided supporting analysis, which showed that increasing PEV adoption by 2030 is essential to achieving California’s long-term GHG mitigation goals. SCE also relied on E3’s cost-benefit analysis to show that PEV adoption yields net economic and ratepayer benefits. In January 2016, the CPUC authorized SCE to proceed with the pilot program.
People
Litigation: assessing solar resources value | Oregon PUC staff, 2016–17
The Oregon Public Utilities Commission (OPUC) staff retained E3 to develop a methodology for calculating the value of customer-owned solar photovoltaic resources to ratepayers of investor-owned electric utilities, with the aim of informing regulatory policy. E3 partner Arne Olson served as an expert witness on behalf of the commission staff in a litigated case before the OPUC. Our methodology received broad support from stakeholders, including utilities, environmental groups, solar industry advocates, and consumer advocates. The commission is expected to rule on the proposed methodology in early 2017.
People
Using a microgrid for renewables integration | U.C. San Diego, 2011–13
E3 worked closely with the University of California, San Diego (UCSD), to develop innovative business cases for utilizing UCSD’s microgrid to provide system-level renewables integration services and integrate UCSD’s onsite solar resources. The UCSD microgrid consists of a 30 MW combined heat and power system that includes natural gas generators, steam-driven chillers, and thermal storage. E3 benchmarked the UCSD microgrid and developed an optimal dispatch model that determines hourly dispatch scenarios for on-campus resources and cost-effective strategies to provide peak load shifting, grid support, and PV firming. Using the model’s results, E3 proposed new tariff designs and incentives that could motivate UCSD and similar customers to use their distributed resources to integrate variable renewable energy.
Publications
People
Electric rate discounts to support electrification | Port of Long Beach, 2007-2015
E3, as electric rate consultant to the Port of Long Beach, the nation’s second-busiest port, led negotiations with Southern California Edison (SCE) to achieve electric rate discounts in recognition of the Port’s electrification program and resulting reductions in emissions of GHGs and criteria pollutants. Negotiations led to the California Public Utilities Commission’s March 2014 approval of SCE’s Rate Schedule ME, which provides electric rate discounts and a program under which SCE installs major electric infrastructure at no cost to the port or its tenants. These measures support critical electrification and environmental improvement projects at the Port, which is expected to quintuple its electric usage by 2030. The projects will improve air quality in the region, and rate discounts are expected to yield more than $300 million in savings over the term of the agreement.
People
Strategic program development and consulting | DOE Technical Assistance to States, 2008–present
E3 has been a resource to the Department of Energy’s (DOE’s) Technical Assistance to States program through Lawrence Berkeley National Laboratory since 2008. Our projects help state governments better understand how to implement energy efficiency programs and how to make them cost-effective. E3 has advised utility commissioners and senior policy staff in Pennsylvania, Georgia, South Dakota, Illinois, Arizona, and other states on major aspects of their program designs. We provide accurate information, guidance, and background based on our knowledge of various states’ decisions, and share our expertise in standard industry practice.
People
Transportation electrification assessment | CalETC, 2014–16
E3 analyzed the grid impacts of charging light-, medium-, and heavy-duty electric vehicles (EVs) for the California Electric Transportation Coalition (CalETC), a consortium of automakers and utilities. To quantify the distribution system upgrades needed to accommodate residential charging of light-duty EVs, we mapped vehicle registration data with utility distribution system and load data for more than 81,000 circuits and feeders and 2,200 substations; we then modeled costs under different rate and charging scenarios.
Even with clustered EV adoption, distribution impacts were modest, and we found that managed charging reduced distribution upgrade costs by 60 percent. For most technologies studied, we showed that EV adoption can actually reduce rates for utility customers while providing net economic, environmental, and societal benefits for California. CalETC’s member utilities used our study to educate regulators and stakeholders about the benefits of EV adoption prior to seeking authorization to invest ratepayer funds in charging infrastructure and customer outreach.
Publications
People
Net energy metering tariff evaluation tool | CPUC, 2015
E3 created a public tool for the California Public Utilities Commission (CPUC) to inform the development of a successor to existing net energy metering (NEM) tariffs for eligible customer-sited renewable generators. This tool helped the CPUC and stakeholders balance legislative directives to design tariffs that maintain sustainable growth of such generation and ensure that total benefits to customers are approximately equal to total costs.
The tool lets users evaluate different rate designs, simulating their impact on adoption of customer-sited PV and on bills for all ratepayers, while accounting for feedback effects on future rates and life-cycle cost-effectiveness. Providing a common model to all parties allowed the CPUC and stakeholders to focus on fundamental differences in proposals and scenarios, rather than on disagreements and confusion over model differences.
People
Time-dependent valuation for building codes | CEC, 1999–present
E3 supports the California Energy Commission (CEC) in implementing the state building energy code by maintaining the economic framework for energy standard requirements and allowed trade-offs for new construction. We have worked with the CEC and its stakeholders since 1999 to continually refine a time-dependent valuation (TDV) methodology, and we are now under contract to support the 2025 Title 24 Update. The TDV methodology uses a 30-year forecast of the social cost of energy that varies hourly and by location to account for shifts in system peaks over time, and regional variations in climate and grid utilization. . E3’s initial study investigated a shift to a value-based standard that accounts for the time and geographic differences in energy costs seen in California energy prices, natural gas and propane markets, as well as in the costs of electric utility distribution and transmission systems. TDV was initially adopted in 2005, and E3 supported the updates in 2008, 2013, 2016, 2019, and 2022.
Publications
People
Distributed resources planning tool development | Con Edison, 2014
E3 built on a collaboration with Con Edison going back to 2000 to develop an integrated demand-side management (IDSM) model that expands the utility’s distribution planning capabilities. Using detailed data on customer populations, the tool assesses market potential for dispatchable distributed energy resources (DERs) within local electric networks, enabling Con Edison to identify lower-cost ways to alleviate local distribution constraints.
Con Edison has integrated the IDSM tool into its distribution planning practices and is using it to help realize the New York State Public Service Commission’s Reforming the Energy Vision initiative. The E3 team continues to refine and enhance the tool, which won the 2014 Utility Analytics Institute Innovation Award.
People
Avoided Cost Model for evaluating DER programs | CPUC, 2004–present
Since 2004, the California Public Utilities Commission (CPUC) has used E3’s Avoided Cost Model (ACM) to estimate the benefits of energy efficiency, distributed generation, energy storage, and other distributed energy resources (DERs). The ACM has evolved along with energy markets and policy in the West, and it currently projects avoided costs for energy, losses, generation capacity, ancillary services, subtransmission and distribution capacity, renewable portfolio standard purchases, carbon allowances, and other air permit costs. The 30-year hourly forecast is differentiated across California’s 16 climate zones. Since 2019, E3 has provided ongoing support to refine the CPUC’s cost-effectiveness framework for distributed energy resources, expanding the applications of the Avoided Cost Calculator to include the cost-effectiveness of California’s entire DER portfolio.
The CPUC approves over $1 billion in annual funding for DERs using these avoided costs for its cost-effectiveness tests. The ACM is suitable for stakeholder processes and contentious regulatory proceedings because it uses robust methods and publicly available input data. E3 also allows the download of the ACM so that all stakeholders can audit any of the calculations.
